Kandi is a town, arrondissement and commune in the Alibori Department of eastern Benin. Originally a market town, Kandi is now primarily a farming centre. It lies on the nation's main north-south highway, 650 km from Cotonou and 325 miles (523 km) north of Porto-Novo. The town is the capital of the department of Alibori. The commune covers an area of 3421 square kilometres and as of 2013 had a population of 177,683 people. The town itself had a population of 27,227 in 2002.
Most of the population are engaged in agricultural activities followed by trade, transportation and handicrafts. The main crops grown are maize, cotton, kapok, millet and peanuts. There are notable iron deposits of high quality in the vicinity.